The government is studying the proposal to impose a vacancy tax on developers to address the number of unsold luxury condominium units in the Klang Valley, said Deputy Federal Territories Minister Datuk Seri Edmund Santhara Kumar last week.
According to the data provided by the National Property Information Centre (NAPIC), there were 2,260 unsold condominium units located within the Klang Valley, comprising of 498 luxury units worth RM1 million and above as of the second quarter of 2018.
The proposal would be studied further however since the number of unsold units is less than 4 per cent to date, there is no need for such a tax at present from the ministry’s point of view.
Datuk Hasanuddin Mohd Yunus (PH-Hulu Langat) asked in the Dewan Rakyat if the government will be imposing similar tax practices when compared to other major cities around the world such as Vancouver and Melbourne to address the unsold condominium units’ issue.
A vacancy tax is a tax where any property that is left vacant and unsold for a certain amount of time is charged a penalty based on a percentage of the gross selling price.
Factors that contributed to the accumulation of unsold luxury condo units were buyers’ inability to obtain financing loans and the mismatch in supply and demand, said Edmund.
Besides that, he also said that the issue needs be addressed in a holistic manner by all those involved including the Finance Ministry and Bank Negara Malaysia. Also, the Kuala Lumpur City Hall (DBKL) will take into account the demands and necessities in issuing planning approvals for each development project in the city.
In another question on whether the ministry would be imposing a moratorium on luxury real estate development projects due to oversupply, Edmund answered that DBKL will study the Kuala Lumpur Structure Plan 2040 (KLSP40) thoroughly to ensure they do not accumulate into a glut.
Source: The Malaysian Institute of Estate Agents, The Sun Daily
Are you looking for an investment opportunity or just looking to buy your first home? We want to hear from you. Just leave us your details and our professional team will get back to you.